New Real-Estate Pitfalls Targeting Young Haredi Buyers
Media personality Yankele Friedman warned in a blunt interview about a wave of real-estate schemes aimed at young Haredi men with limited savings. Speaking on the program "Davar Rishon" with Moshe Mans, he said the pitches promise fast appreciation in two or three years and invite buyers to "join the success" by becoming co-owners in an apartment with a relatively small sum, around 150,000 shekels. Friedman argued that the model is dangerous and often leaves the small investors exposed while the companies behind the deals collect fees.
He said joint ownership creates serious financial and legal risks. If one co-buyer fails to pay a mortgage installment, the negative credit mark, or BDI stain, can be registered against all the partners. He also warned that if one of three partners dies, the heirs can drag the deal through courts for up to five years, making it almost impossible to exit even with strong legal counsel. In his view, the profit usually goes to the promoter, who charges an entry fee, exit fee, and lawyer’s fee, while buyers ignore taxes and risks.
Friedman also criticized the sale of agricultural land under the promise of a future city, saying such plots are often advertised in ultra-Orthodox neighborhoods. He said buyers may technically purchase land, but there is no certainty it will ever be approved for construction. In some cases, he said, land was later taken for a road and the owners received no compensation. According to him, land purchases only make sense for people who can leave money untouched for 20 years.
A major part of the interview focused on what Friedman called cynical use of prominent rabbis and judges in advertising. He described a case in which a project used a picture of a senior judge to suggest support, but his relative later confirmed the judge had only come to install a mezuzah and was photographed without endorsing anything. Moshe Mans added that he once attended a large investment conference for the collapsed firm Basadnu, where the CEO arrived with a large Talmud and made a completion-of-a-Talmud ceremony, which convinced him to walk out. Friedman ended by calling for external advice from an objective professional and for mandatory financial guidance for young people, similar to pre-wedding groom training, so they do not lose their savings at the start of adult life.
